Title Loans

In today’s financial world there is a plethora of loan possibilities for borrowers. There are unsecured loans, mortgages, car loans, debt consolidation, payday loans, title loans, etc. If you are having problems there is a solution for you out there.

Title loans are given to borrowers that are willing to put up their car as collateral in case they default on the loan. Sounds like a pretty good idea? Take out a loan against the car you’ve already paid off? This may be a good idea in certain situations, but this debt instrument is certainly not for everyone. If you default on your car title loan, the lender has the ability to repo your car.

Auto title loans should be a last resort for borrowing money if you are in a pinch. The loan is usually issued in the amount of 30%-50% of the cars value. This means that if you were to default on the loan, the lender is able to repo your car and resell it for a substantial profit. Also, the interest rate on the loan is usually pretty high; it can be like paying off a credit card every month.

Who are title loans good for?

With a title loan you have the ability to walk away with cash in your pocket and still drive your vehicle away. Automobile title loans can be a great source for some fast cash. If you have bad credit, it’s not a problem! Title loan lenders do not check your credit score and they usually require minimum income verification as well; making this one of the best borrowing solutions for people with bad credit.

The repayment terms are usually on a monthly basis and include interest + principle. Some title loan lenders require payment due in full within 30 days. My advice is to not accept a title loan unless you know good and well that you will be able to make the payments. There is nothing worse than being further in debt and not having a car.

Establish Credit

Some people may frown upon title loans, but they can be very useful. Do you have bad credit? When was the last time you tried to get a credit card and got denied? Once you have bad credit it can be hard to rebuild your credit history if you don’t have any active accounts anymore.

The most useful part of getting an automobile title loan is the fact that your payments will be reported to the credit bureau which will allow you to start building up your credit again. With bad credit almost no lender wants to give you a loan unless they know for certain that you will pay. Title loan companies are not concerned with your credit history – they don’t even check it.

The cost of getting a cash advance for your car title can seem high; the interest rate is usually double digits. However if you don’t have any other way to start rebuilding your credit history, then why not take out a loan against your car, establish good credit again and enjoy low interest payment accounts in the future


  1. Thank you for listening!

    Seeking a car title loan. I am owner of 2002 Porsche 911 w/clear title. Is a loan possible for one who is presently unemployed.

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